Access to Finance for Jobs and Growth MPA Phase 1 - Uzbekistan

pipeline

Using an innovative, programmatic, and large-scale approach to financing with in-built peer-to-peer learning, the ECA Access to Finance for Jobs and Growth (FINGROW) Multiphase Programmatic Approach (MPA) aims to leverage the transformative power of financial inclusion to foster the creation of new and better jobs, through boosting digital payments for all and access to capital for businesses. FINGROW MPA will include operations in Uzbekistan and Turkiye during Phase 1. The MPA is expected to be organized under three pillars with list of tailored menu of activities where each country can choose from. The pillars are: (i) Digital payments (domestic and cross-border); (ii) Credit and derisking; and (iii) Equity financing. It is expected that following instruments will be used: Investment Project Financing (IPF), Program for results (P4R) and IPF with guarantee. The operation in Uzbekistan will be implemented by Entrepreneurship Development Company (EDC) and will consist of three main components: (i) Reforming and scaling up EDC’s PCG scheme to share risks with banks, Microfinance Organizations (MFOs), and leasing companies to incentivize greater lending to competitive SMEs, focusing on greening their operations, creating more and better jobs, and boosting exports; (ii) Private equity (fund of funds- FOF) for scaling up SMEs with high growth potential. The FOF would be established as a limited liability corporation (FOF LLC) fully owned by EDC. It will focus on SMEs investing and scaling up business activities aligned with the National Green Taxonomy of Uzbekistan, as well as those led by women. And (iii) Implementation and technical assistance support. The project will provide technical support for project implementing agencies, including EDC and MEF’s Department for SME Development.